4 Answers

I would say it's 75% LTV for people with equity in their property and 85%-95% for first time buyers. The problem is a concern for most people and to save a 25% deposit is hard for many people, if the haven't got the bank of mum and dad to fall back on.

There are deals for 90% mortgages available, even though they're not great as they price in the "risk" to them.

But don't forget to keep your credit rating clean as this will also have an impact. If you pay £200 per month for a loan, lenders will multiply this by 12 months and subtract this from your salary, which means that the amount borrowed is limited further. Black marks on your credit also has an impact more than pre credit crunch.

You are not alone finding it hard to raise 25% or 30%. So look at loans up to 85% avoiding, as John and Paul say, the 90% Loan to Value products if you can.

The smaller the deposit, of course, the more you will have to borrow. If you still fit the criteria of the potential lenders, you would be wise to satisfy yourself that it will fit reasonably comfortably within your anticipated budget. | 01.06.11 @ 17:05

the truth is that there will be many people who had 75% ltv 2-3 years ago and might find when they come to renew their deal that they have risen to 80% because lenders are taking an exceptionally cautious view on values.

it used to be the case that if you could supply recent sales data on similar properties that the lenders would consider an appeal but they will only do that now if the valuer agrees!

essentially, too many initial valuations have been challenged as over optimistic on repossessed properties, leaving the valuation company at risk from the lenders wrath.

valuations become cautiouslenders become super cautious

borrowers become stuck as their equity becomes more fluid than water!

and this is before you factor in how lenders treat new build properties! some lenders insist on a minimum of 40% deposit on new build flats which for some first time buyers is often the limit of their budget for a first home. | 01.07.11 @ 02:49